Omega Oil & Gas (ASX: OMA) Starts Canyon-4 Appraisal Well

Omega Oil & Gas has started drilling Canyon-4, the second well in its fully funded 2026/27 Taroom Trough appraisal program.

The well sits about eight kilometres south of Canyon-3 on Omega’s operated eastern Taroom Trough acreage in Queensland. Results are expected around the end of September.

Canyon-4 will test whether stacked Permian oil and gas reservoirs remain continuous and retain their quality across Omega’s acreage. Its findings will be integrated with earlier wells and seismic data covering an initial focus area of about 400 square kilometres.

Testing the Southern Extension

Omega plans to drill Canyon-4 to a measured depth of approximately 3,900 metres. The top of the Permian section is expected near 3,200 metres.

That section is projected to sit around 100 metres updip from Canyon-3. The primary target is the Canyon Sandstone, while the well will also intersect a secondary target.

Omega will drill the well at a 24-degree deviation within an existing three-dimensional seismic dataset. It will collect conventional core and a comprehensive suite of wireline logs.

The work is designed to assess reservoir continuity, quality and hydrocarbon phase distribution within PCA Areas 342 and 343.

Chief Executive Officer and Managing Director Trevor Brown said: “Canyon-4 is positioned to provide further evidence of the vast scale of the oil and gas resources across our eastern Taroom Trough acreage.”

Canyon-3 Sets the Reference Point

Canyon-4 follows results from Canyon-3, which intersected a 526-metre oil and gas-bearing Permian interval. That well recorded 170 metres of aggregate net pay across six stacked, regionally correlatable reservoirs.

The primary Canyon Sandstone target was 14% thicker than the equivalent interval at Canyon-1. Its average porosity was also 55% higher.

Canyon-3 identified another high-quality gas and condensate-bearing interval in the Lower Kianga Sandstone. Omega says drilling has demonstrated Canyon Sandstone continuity across more than 40 kilometres.

Earlier work at Canyon-1H also provides production context for the current campaign. The Canyon Sandstone delivered a normalised rate of 987 barrels of oil per day and 1.45 million standard cubic feet of gas daily. That rate was normalised for a 2,000-metre section.

Reservoir pressure at Canyon-1H measured 0.79 pounds per square inch per foot in the Canyon Sandstone.

Drilling Sequence and Resource Update

Each vertical well, including rig relocation, is expected to take about 30 days. Results from the remaining two vertical wells are scheduled at roughly monthly intervals, subject to drilling progress.

After Canyon-4, Omega plans Canyon North-1 and Canyon North-2 within ATP 2081. Those wells depend on land access, drilling results and joint venture approval.

The four-well vertical campaign is then expected to be followed by one or two flow-tested horizontal wells. Their lateral sections could extend up to 2,000 metres.

Omega anticipates an updated resource assessment in late 2026. It also retains options for additional rig work if operating results warrant further drilling.